The best ratio of paid traffic and free traffic: Taobao paid and free traffic relationship

TaobaoWhat is the appropriate proportion of paid traffic for stores (including Tmall)?

If inE-commerceThe platform has very few free visitors, and most of the traffic comes from paid promotion. Is it okay?

This question is really worth discussing.

Similarly, in the face of problems, we can't discuss one-size-fits-all, but distinguish different situations to analyze.

The best ratio of paid traffic and free traffic: Taobao paid and free traffic relationship

The question of how much the paid traffic of Taobao stores accounts for is more appropriate, which can be discussed from two aspects:

  1. On the one hand, it depends on the current situation of the store. Is it a new store or an old store?What is the store level?
  2. On the other hand, it also depends on the effect of paid traffic itself.

See if the store is doing paid traffic

Let me touch on the first point.

Different types of stores have different proportions of paid traffic.

If it is a new store that has just opened, the reputation of the store is still very low, and the proportion of paid traffic is relatively large, even if it reaches 80%, it is very common.

Because it's a new store, if you don't operate it, don't divert some people to "activate" it through through-train promotions.

It is difficult for new stores to survive on free traffic alone

Through train promotion is equivalent to an "accelerator" for store growth.

it is similar toVibrato"dou+" function in .

In the initial stage of the new store, in the case of "one poverty and two whites" in all aspects, you can use the through train to quicklydrainageIt can quickly grab the ranking, grab the traffic, accumulate the traffic of the new store, increase the popularity, so as to increase the sales and break through the level!

Why did the new store close after less than 3 months of opening?

We will find that many stores are closed within three months of opening.

The reason is that there is no traffic, no transactions, and no positive feedback for a long time.drainageQuantity is about to close of course!

Because the purpose of opening an online store is to make money, when people find that the money to open a Taobao store is not so profitable, or even has no hope of making money, they cannot continue to stick to it.

In the end, I can only sigh that "the ideal is very plump, and the reality is very skinny"...

But if these people have learned to operate and will use the through train to promote it, the situation may be very different.

What is the appropriate proportion of the old store's paid traffic?

For old stores, if the monthly transaction volume is more than 10, the proportion of paid traffic should not be too high.

It is generally recommended to be within 30% of the sales of the whole store.

For example, if a store has a monthly turnover of 15, the average monthly paid traffic will generally not exceed 5.

Why is this happening?

The reason why the proportion of paid traffic is not considered in the early stage is because there is nothing in the early stage and cannot be considered so much.
First, you have to invest in order for the store to survive.

After the monthly sales volume is 10+, you no longer simply consider the growth of the store, but the profit.

Paid traffic depends on the profit margin of the product

Then, the profit margin of most products generally does not exceed 50%, and the profit margin of most products is around 30%, or even less than 30%.

At this time, if the paid traffic accounts for too much, there is no money at all.

In addition, it is said that the proportion of paid traffic is too large, which will also affect the distribution of natural search traffic.

Of course, this is not confirmed, it is just a "rumor"!

In fact, the main question is whether or not to make money.

If paid promotion can really bring profits to the store, whether or not there is organic search traffic, this is another realm.

Therefore, for stores with monthly sales of less than 10, it is generally not necessary to consider the proportion of paid traffic, and it is possible to exceed 50% or even 80%.

For stores with monthly sales of more than 10, we need to control the proportion of paid traffic, because we can't just look at sales, but also consider "cost".

In addition to considering the different basic conditions of the store, it is also necessary to consider the advertising effect of paid traffic.

Some stores have a very high transaction volume, but paid traffic accounts for a large proportion, but the proportion is not considered, because the profit margin is high, so the paid traffic itself is not lost.

The reason why we control the proportion of paid traffic above is to consider the issue of profitability, because paid traffic (as long as it is a direct train promotion) itself is often difficult to achieve direct profit, and it often drives related sales and hidden transactions in the whole store, or through old customers. accumulation to achieve profitability.

Some products paid traffic promotion effect is good

For some products, paid promotion itself performs well.

I have seen many products, the through train itselfProduction ratioIt is very high, it can reach 3.0 or more, or even higher.

For example, if we have cooperated with some products, the paid traffic of through train can reach 6.0 or even 8.0, so this kind of product does not need to consider the proportion of paid traffic at all.

For direct train promotion products that do not lose money, what must be considered is how to maximize the scale of traffic without losing money.

Because paid promotion does not lose money, the entire store is absolutely profitable.

If your drive-thru itself isn't losing money, then you should be desperate to do paid promotions while staying at the same time.

Don't miss the opportunity, time never comes back!

Don't always stare at the data of the through train itself, so as not to miss the opportunity and never dare to increase investment.As a result, the store has been doing nothing and can never break through the bottleneck...

Moreover, without any product, it is possible to make a steady profit all the time. If there is, then the peers will definitely catch up.

Therefore, in order not to let your peers catch up, you have to run faster... There is another situation, that is, some old stores, or "old treasures" that have been put away for a long time.

There are many reasons, such as violations, such as category competition is too fierce,SEOFree organic traffic cannot be boosted.

If you use paid promotion, you can bring in traffic and drive transactions.

Once the through train stops, after a period of time, the store may "die" and there will be no traffic or transactions at all.

For this kind of store, paid traffic must be adhered to.

Paid traffic can earn 10 times as much as free traffic

In addition to the personal Douyin account with friends who have more than 100 million followers, the total number of Douyin account followers in multiple industries at the same time exceeds 400 million followers, and the account has nearly 20 followers.

(Actually, their own experience in making Douyin accounts is also possible)

This is their result last year, but this year they have given up on this path, and they have hardly put any effort into raising fans.

It’s not that you can’t make money. There is definitely a chance to make money by making a Douyin account, but making money by slowly increasing fans is not stable and requires continuous creativity.

They rely on spending money, on any platformWeb PromotionThat’s all, paid traffic can earn 10 times as much as free traffic (that’s the point).

At the company meeting two days ago, they made a review of themselves:

  1. In the past, internal innovation was 70%, and it will drop to 30% in the future, and we will not make big innovations, but only make local improvements.Every project leader must learn to spend more money and spend more time looking for big innovations outside.
  2. Don't think about the market demand yourself. The insights of the market demand must be based on the data of the peers, so that the peer verification 0-1 is feasible.
  3. In the past, they had too many ideas and spent too much time thinking about them. In the future, we will be a company with second- and third-class innovation but first-class execution.

(Writing these summaries, they also find it incredible. But it is really reflection)

I don't know how many people can understand the meaning behind it?

  • The cost of innovation is too high, like the first person to go up the mountain, to chop wood and trees.As for the second and third person, just follow the footsteps of the first person and walk forward.
  • Reduce risk, increase win rates, and execute to scale.
  • Compared with commercial innovation, scaling up through paid traffic makes more commercial sense.

Although paid traffic may earn 10 times the free SEO traffic, the premise is that the production ratio ROI must be done well.

How to calculate the production ratio?Click the link below to view ▼

Hope Chen Weiliang Blog ( https://www.chenweiliang.com/ ) shared "The Best Ratio of Paid Traffic and Free Traffic: The Relationship between Taobao Paid and Free Traffic", which is helpful to you.

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